So I came across this article I really enjoyed and thought about sharing it. I got to a paragraph towards the end of the article and BAM! I knew I had to.
Well, there’s a good chance that the landlord is earning enough of a profit from some other part of the building – or some other properties – that there’s a significant tax liability on the books. An empty storefront that loses $16,000 a month is a great way to offset that tax burden. There’s also the value of the building to consider. A residential property is assessed based on comparable homes in the immediate area. But commercial real estate is valued on cash flow. If a shop is recorded on paper as commanding a rent of $16,000 a month that translates to a specific resale value for the building. The fact that the shop is vacant at the moment isn’t a problem. However, accepting a new tenant at a lower rent would devalue the entire building. (emphasis mine)JS Granola Shotgun
San Francisco CA obviously isn’t the marker Mansfield MA can be measured by but I wonder if its more an issue of scale than reality. The truth is Mansfield and many other communities have and will continue to see vacant storefronts. We will also share the experience of regulation,speculation and revenues that fail to meet needs.
My question then would ultimately be: Do we know where we are and where we’re going?
As a member of the Master Plan Committee I have to tell you I’m personally not reassured the Town or its citizens know.
The article by the way can be found here